Journal
AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS
Volume 86, Issue 1, Pages 14-25Publisher
BLACKWELL PUBLISHERS
DOI: 10.1111/j.0092-5853.2004.00559.x
Keywords
animal manure; demand; mathematical programming; nonpoint source pollution; nutrient management; spatial equilibrium; welfare cost
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Because of environmental concerns, many states are regulating animal manure applications to crops. A conceptual model is presented to describe manure demand for crop nutrient application under alternative regulatory standards. Demand relationships are incorporated into a spatial equilibrium model to estimate welfare costs of phosphorus and nitrogen regulatory standards for manure applications. Model estimates for Virginia indicate that regulatory standards for manure application achieve large reductions in excess nitrogen and phosphorus and result in 5-15% welfare losses excluding nonmarket environmental valuation.
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